The weakness of the dollar and other currency market news
Release of data on the U.S. economy is expected to scheduled maturity: Information confirmed that the weekly performance of applications for unemployment benefits will publish on time, and a delay of the ISM service sector while no one spoke. Although the Bureau of Labor Statistics reported that the employment report until U.S. citizens should not be expected, since the government's work has not resumed.
The Australian dollar rose again thanks to the strong performance of the Chinese services. However, the pair AUS/USD is in an almost steady throughout the last few weeks. It is clear that a significant breakthrough for the pair needs to break above 0.9500 or above 0.9300 below.
Before the meeting of the European Central Bank there were preconditions to slow upward trend of the dollar. The result of the conference was a major rally in the chart EUR/USD, provoked by Mario Draghi speech. President of the Central Bank did not say anything that could reduce the euro, deliberately avoiding talking about interest rates, mentioning only the weak performance. Market rightly puts it as tight monetary policy, because the reserves of the ECB continue to sink, and the Fed's balance sheets, by contrast, are growing at an incredible pace. In addition to this, the euro got a nice boost from Prime Minister Enrico Letta, who won the trust after its predecessor and now tries to smooth Berlusconi attempts to destroy the country.
Meanwhile, willingness to take risks does not disappear, and even grows with renewed vigor and zeal tames the U.S. dollar. Based on this, in the short term the dollar will be weak on the background breathless market. Prerequisites for the strengthening of the dollar could be two diametrically opposite scenario. First, the reason for continued growth can serve as turmoil in the U.S. government and the desire of players to go anti risk strategy. Secondly, the resolution of the situation in the U.S. is likely to bring the same effect. In any case it is necessary to understand that the risk of any change in any side is extremely high and should be prepared. Most market players debating instability and inactive open new positions (even if according to the U.S. futures market will open a lot of long positions in the pair EUR/ USD, they will still be far lower than those of the previous year).
British show sensitivity of routine reporting of statistics, and in fact it has fueled the growth rates in recent years. In relation with the PMI was the following trend: the highest correlation we observe in the case of reduction. In addition, much will depend on how strong the difference would pound and the dollar.
In August were released very strong business activity of America. If this dynamic and will be transferred in the fall, then on his way to the top dollar to meet with serious pressure. Observed weakness pair USD/JPY and the inability to revive growth talk about the possibility of the situation in any unpredictable direction.
Noteworthy and pair EUR/USD. Chances reverse motion with the proviso that it can not break through the 1.3550 area. Traders will want to quickly close long positions opened the day before, in an attempt to protect themselves from risks. All these operations can be executed on the automated trading platform.
Union dollar and the yen, while located in the zone of possible reversal, also deserves attention. As he bravely overcame a couple of key support level, now he can no longer retreat.
Saga USD/JPY pair is slightly marred by an overhanging cloud Ichimoku determining the level of volatility. Care should be taken by this parameter to assess the possibility of further sales positions.
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